European investors given access to successful managed futures strategy in a UCITS structure
Luxembourg – February 16, 2023.
Following the CSSF approval at the end of November, iM Global Partner has announced it has now launched the iMGP DBi Managed Futures fund with its Partner, Dynamic Beta investments, thanks to keen interest from European investors who have allocated €60 million so far in seed money.
Jamie Hammond, iM Global Partner, Deputy CEO, Head of International Distribution, commented: “Managed Futures were one of the best performing asset classes of 2022, and our US domiciled Managed Futures ETF strategy (DBMF) saw tremendous support from investors seeking diversification away from equity markets. For example, managed futures (as represented by the SG CTA Index) had negative correlation of -0.02 with global stocks (MSCI World Index) over the last 5 years. Due to this, we had many enquiries from European based investors about making this strategy available in a UCITS format, which we have now done.”
Dynamic Beta investments (DBi) is the sub-Manager of the iMGP DBi Managed Futures fund, a new sub-fund of the Luxembourg domiciled UCITS SICAV, iMGP.
Andrew Beer, co-founder of Dynamic Beta investments, said: “Managed futures – arguably offers greater diversification benefits to stocks and bonds than private equity, private credit, real estate, commodities and many other common diversifiers – yet few wealth managers and institutional investors in Europe have meaningful allocations. With this fund, we aim to change that.”
iM Global Partner launched this strategy 3 years ago for the US market and the fund has become the largest Managed Futures ETF in the industry in terms of assets under management (source: etfdb.com as at 30 January 2023).
The US-based DBMF had extraordinary growth in 2022, increasing its assets under management from USD 60 million in 2021 to around USD 1 billion at the end of 2022 and posting a return of 23.1% in 2022 versus the MSCI World which fell 18.1% (source Morningstar, as at 31 December).
Past performance does not predict future returns. Returns may increase or decrease as a result of currency fluctuations. All figures as at 31 December 2022. Source iM Global Partner unless otherwise indicated)
The iMGP DBi Managed Futures fund
The new fund aims to replicate the pre-fee performance of a representative basket of leading managed futures hedge funds in a UCITS wrapper. By targeting the performance of a portfolio of hedge funds, split between different sub-strategies, it seeks to minimize single manager risk. The fund seeks to match the core factor exposures of the targeted hedge funds with a dynamically adjusted portfolio of liquid futures contracts. The iMGP DBi Managed Futures fund does not invest directly in hedge funds. Rather, the sub-manager, DBi, uses quantitative models to estimate the current factor weights of the targeted hedge funds and invests in index futures to seek to obtain similar exposures. The portfolio is rebalanced weekly. About iM Global Partner iM Global Partner is a worldwide asset management network. We select and build long-term partnerships with talented and independent asset management companies through direct capital ownership. We are present in 11 locations across Europe and the United States and provide our clients with access to the best investment strategies of our Partners. We have over USD 35 billion of assets under management as of end December 2022.
Partners with iM Global Partner
Polen Capital – US & Global growth equities, Partner since 2015
Dolan McEniry – US credit, Partner since 2016
Sirios – US long/short equities, US credit, Partner since 2018
Dynamic Beta investments – Liquid alternatives, Partner since 2018
Scharf Investments – US value equities, Partner since 2019
Zadig Asset Management – European equities, Partner since 2020
Richard Bernstein Advisors – Global asset allocation, Partner since July, 2021
Asset Preservation Advisors – US municipal bonds, Partner since September 2021
Berkshire Asset Management – US Dividend focused equities, Partner since December 2022 imgp.com 2
About the iMGP range of funds
The fund range seeks to bring high-quality investment strategies from talented portfolio managers around the globe to financial advisors, consultants, institutional clients and individual investors. iM Global Partner’s mission is to find distinct strategies in asset classes that it believes offer the best opportunity to add value through active management. In most cases, the strategies that iM Global Partner brings to the market are not available through any other managed fund. The iMGP umbrella is a UCITS SICAV with multiple sub-funds and is regulated by the CSSF. The SICAV is managed by iM Global Partner Asset Management, with the objective of appointing best-in-class fund managers to deliver high quality strategies via 18 iMGP sub-funds.
About Dynamic Beta investments
DBi was founded in New York in 2012 by Andrew Beer and Mathias Mamou-Mani and has one of the longest track records in the hedge fund replication space, with the launch of its first product in 2007. Today, DBi manages three core strategies that seek to replicate the pre-fee performance of portfolios of hedge funds in the Managed Futures, Equity Long/Short and Multi-Strategy (Equity Long/Short, Relative Value and EventDriven) categories. iM Global Partner acquired a non-controlling stake in DBi in September 2018. Dynamic Beta investments had more than USD 2.1 billion in assets under management as at end December 2022. www.dynamicbeta.com
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Disclaimer
This is a marketing communication. It is not a binding contractual document, or an information document required by law. The information contained in this document does not constitute an offer or recommendation to buy or sell units of the fund and is not sufficient to make an investment decision. Please refer to the fund’s prospectus and KID before making any final investment decision. These documents, containing full information on the risks associated with the investment, are available in English on www.imgp.com. The investment concerns the acquisition of units or shares in a fund and not in a given underlying asset